Fast track for BBC fees raid

The BBC could lose tens of millions of pounds of its licence fee income within weeks to fund regional news on commercial television channels.

Cash strapped: the BBC could lose millions due to a new initiative.

It had been thought that time-consuming legislation would be needed to usher in the 'top-slicing policy', but the Government has indicated that this is not necessary so it could start taking the cash immediately.

Last week, Treasury Minister Stephen Timms was given the job of bringing in the scheme outlined in Lord Carter's Digital Britain report after Carter stepped down as Communications Minister. Plans include using anything left over from the £130m a year set aside by the BBC to help the elderly and disabled switch to digital television.

The Government has said it wants to use part of the money to fund pilot news schemes on ITV in England, Scotland and Wales by 2013.

It has said it wants to introduce a Digital Economy Bill to bring the proposals in Digital Britain into force, though it has not set out a timetable.

There is no guarantee that time will be found in the Parliamentary calendar for the legislation when Parliament reconvenes in the autumn. However, it has emerged that because the Government believes it would not require new legislation to take the licence fee money from the BBC, it could act at once.

'We would not require new legislation because the licence fee is dealt with by the BBC Charter, which is an agreement between the Government and the Corporation,' said a spokesman for the Department of Culture, Media and Sport. 'However, we would have to demonstrate due process to do so.'

The BBC has fiercely opposed the plans to take some of its licence fee. Sir Michael Lyons, chairman of the BBC Trust which regulates the Corporation, has warned against using the licence fee as a 'slush fund'. He has warned that the Trust 'will not sit quietly by and watch this happen'.